TradingMarkets 7 ETFs You Need to Know for Thursday

Energy stocks, which had led the markets higher in recent days, reversed to the downside on Wednesday. Downgrades to regional banks by Credit Suisse also put pressure on exchange-traded funds linked to the financial sector. Emerging markets were also among those ETFs met with aggressive selling.

Here are 7 ETFs You Need to Know for Thursday.

We have been tracking the rally in the Energy Select Sector SPDRS, XLE
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for the past few days as the ETF has become increasingly overbought. Sellers finally responded to those overbought conditions, forcing a sizable pullback in XLE as well as in other oil-stock related funds.

Downgrades of regional banks by Credit Suisse encouraged selling in the sector. This meant lower prices for the SPDR KBW Regional Banking ETF, KRE
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. KRE has fallen for four consecutive sessions and is now deeply oversold.

Emerging market ETFs, on which many traders and investors are pinning their hopes, began to break down from increasingly overbought conditions on Wednesday. The iShares MSCI Emerging Markets Index ETF, EEM
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, had been up for five days in a row below the 200-day moving average before Wednesday’s move lower.

Concerns that PC makers will dramatically decrease production in 2009 encouraged traders and investors to move out of semiconductor stocks. This was good news for the ProShares UltraShort Semiconductor ETF, SSG
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, which rebounded from deeply oversold conditions on Wednesday. To the downside, the slide in technology stocks meant lower prices for the tech-heavy ProShares Ultra QQQ ETF, QLD
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Gold shares were no haven on Wednesday as the SPDR Gold Shares ETF, GLD
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slid back below their 200-day moving average. GLD had only recently climbed above this level, closing above the 200-day moving average for six out of the past seven sessions.

Growing unemployment did little to boost confidence in owners of home building stocks, which were also sold aggressively on Wednesday. The SPDR Homebuilder ETF, XHB
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, was down more than 5% with less than an hour to go before the close.

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